Larry W. Bryant , ChFC

Printed from: www.lbryant.com

Do I Need Disability Income Insurance?

Although most of us are aware of the need for health insurance coverage when determining our risk management needs, many of us fail to consider the possibility that we could become disabled. A disability income insurance policy can help replace income lost because of an injury or illness. Few people would have an adequate “war chest” for an extended battle with a loss of income.

Unfortunately, many of us will need disability income protection before we retire. Without the appropriate coverage, a disability could spell financial disaster.

Disability at any age can disrupt income while medical expenses mount. Unless you have a battle plan, the effects of even a short-term disability could be financially debilitating and emotionally devastating.

Disability Protection

In the event that you become disabled and are unable to work, the benefits provided by disability insurance can help replace a portion of your earned income.

The appropriate amount of disability coverage will depend on your particular situation. However, there are a few issues you may want to consider.

First, consider carrying enough coverage to replace at least 60% of your earnings. Many companies limit benefits to between 50% and 80% from all sources of disability income prior to the disability. This would mean, for example, that the amount of any Social Security disability payments you receive could be deducted from your benefit amount.

If you are concerned about the cost of a private disability insurance policy, consider extending the waiting period, which is the time between the onset of the disability and when you start receiving benefits. Choosing a 90-day or 180-day waiting period (instead of 30 days) may help lower your premium.

Be sure to compare and review policy benefits carefully. Disability insurance can be an affordable way to help protect your assets in the event of a disability.

This site is not a solicitation of interest in any of these products in any other state.

IMPORTANT CONSUMER INFORMATION: Larry W. Bryant may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if (s)he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by Larry that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker-dealer, investment adviser, BD agent or IA representative or any financial institution (s)he represents, contact your state securities law administrator.

Insurance products from the Principal Financial Group® are issued by Principal National Life Insurance Company (except in New York), Principal Life Insurance Company, and the companies available through the Preferred Product Network, Inc. Securities offered through Principal Securities, Inc., 800/247-1737, member SIPC. Principal National, Principal Life, the Preferred Product Network and Principal Securities are members of the Principal Financial Group, Des Moines, IA 50392. Larry W. Bryant, Principal National and Principal Life Financial Representative, Principal Securities Registered Representative, Financial Advisor. L Bryant Financial Services is not an affiliate of any company of the Principal Financial Group.

Principal Life maintains certificates of authority to transact insurance in all 50 states. Principal Life NAIC identification number is 61271. Principal National NAIC identification number is 71161.